I believe the answer is: c. to make the loan look more attractive and competitive now
By offering it at low initial rate, the people who borrow money would experience low burden if they plan to return the money within short period of time. This would make them much more likely to obtain a loan, and it also would make the bank that create the loan program looks better compared to their competitors.
Answer:
As a result, the IFRS test is more strict than U.S. GAAP.
Answer:
A production possibilities frontier identifies the dollar cost of producing a good or service in an economy.
True
Explanation:
Cost of producing could be envisaged through budgeting where the variable cost, fixed cost and total cost is expected to be calculated either through rough estimate.
Answer:
Profit per box of crawfish $0.25
Explanation:
To calculate the Total profit, we can solve the expression;
Total profit=Total selling price-Total purchase price
where;
Total purchase price=(Variable cost per box×number of boxes purchased)+Total fixed costs
Total purchase price=(1×1600)+1,200=$2,800
Total selling price=Selling price per box×number of boxes
Total selling price=(2×1600)=$3,200
replacing in the expression;
Total profit=Total selling price-Total purchase price
Total profit=($3,200-$2,800)=$400
Total profit=$400
To calculate the profit per box;
Total profit=profit per box(p)×number of boxes sold
400=p××1600
p=400/1600=0.25
Profit per box=p=$0.25 per box
Answer:
the marginal cost curve is upward sloping.
Explanation:
Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.
This ultimately implies that, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.
Basically, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.
For example, buying a candy stick and eating it may satisfy your cravings but eating another one (an additional or extra unit) wouldn't give you as much satisfaction as the first due to diminishing marginal utility.
In Economics, the law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.
Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.
Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity. A marginal cost curve is upward sloping because of the law of diminishing returns.